Donating Professional Services to a Nonprofit Auction: Should You?

Q: The school my children attend has a yearly gala with an auction. We always contribute generously to the school. Some of the parents are potential customers. Is it possible to raise money for the school and awareness about my expertise by donating my professional service as an auction item? 

A: Great question.

First, some context. Nonprofits raise auction money by having a buyer in the room that intends to invest in the auctioned item anyway, such as a safari. Imagine, in a flight of fancy, that you have several potential customers in the room. They get into a bidding war for your package. When bidding reaches $20,000, the auctioneer proclaims that you’ve agreed, for the cause, instead of one item to donate three. Everyone cheers. You’re a hero. The school gains $60,000. Richard Branson did something like this for Resource Assistance for Youth, Inc., a group that serves homeless youth in Winnipeg.  

Generally, however, professional services make for lackluster auction items, unless people already keen to gain your service attend the auction. Worse, you might even hurt your brand. Imagine if your package inspires no or few bids.

To help the school and get known, you might, also:

• Volunteer to help at the gala. Volunteer for tasks that involve opportunities to meet with other parents, guests, and sponsors.
• Approach the school using Karen’s Unique Multiplier Approach. Share that you’ve dedicated “x” dollars as a gift to the school because your child attends. State that you also make business philanthropic investments. These investments might be as much as “y.” (Ideally, “y” equals an amount the school considers a major gift-this will get their attention.) Explain that any business philanthropic investments you make must provide returns-to you, the community, and the cause. Explore what you can do together.    

Or, you might:

• Institute strict philanthropic boundaries between your personal and professional philanthropic activities. Continue to give “x” to the school. Forget about the auction item. Instead, approach other nonprofits where you find your potential customers, adapting Karen’s Unique Multiplier Approach. In this case, start with the “y” part of the conversation. Discuss your business philanthropic investment goals. Explore possibilities.

This option avoids the perception of your being negatively opportunistic among peers, (even though research shows that 90 percent of consumers believe that cause marketing is about business benefits). It also limits the school’s gains. However, many find this approach a comfortable solution.

Do you have a question about charitable giving that provides business returns? Send them to karen@kedconsult.com.